The UK government has published a consultation paper on the review of the business rates, the local tax on business based on property values. Responses may be sent in by 12 June 2015. The business rates in the UK are charged on non-domestic properties such as offices, shops and factories. They are normally payable by the occupiers of the premises. The amount of business rates payable is based on the rate able value of the property which is reviewed every five years.

Business rates are becoming an increasing burden for small businesses as the competition from online business increases. It has been suggested that business rates are a proportionately higher fixed cost for smaller businesses and are therefore a burden on those businesses. There is however a small business rate relief available and this has increased in recent years.

The consultation document contains a number of questions and requests for evidence. The government is looking for evidence and data on trends in the use and occupation of non-domestic property and the effect of these trends on particular sectors. The government wants to look at evidence in favor of a property based tax towards a tax with a different base. They would look for alternatives by for example examining evidence from other tax jurisdictions.

The document asks for evidence of the impact of the business rates on business growth, and asks how the rates could be reformed to reflect wider economic conditions. If rates are retained, comments are invited on how they could take into account the size of businesses and their ability to pay the rates. Evidence is required of the impact of the business rates on the competitiveness of UK businesses and especially of the impact on small and medium enterprises. Comments are also requested on any changes to the range of reliefs and exemptions available for business rates.